ExxonMobil
Oil Corporation has executed a sale and purchase agreement (SPA) with
Nipco Plc to sell its majority equity stake of 60 per cent in Mobil Oil
Nigeria (MON) Plc to Nipco Plc, an indigenous oil and gas company.
Mobil Oil Nigeria and Nipco confirmed
the agreement yesterday. Mobil Oil Nigeria, which is required as a
quoted company to make such disclosure, filed the notification of the
divestment at the Nigerian Stock Exchange (NSE) yesterday.
Under the deal, ExxonMobil Oil
Corporation will sell its majority equity stake of 60 per cent to Nipco
Investments Limited, a wholly-owned subsidiary of Nipco Plc. The deal is
still subject to regulatory approvals. However, such divestment deals,
including sales by Oando of its downstream assets, have received
clearance from the regulators.
While all the parties were silent on the
details of the SPA, The Nation’s check indicated that ExxonMobil will
transfer 16.357 million ordinary shares of 50 kobo each to Nipco. The
current market value of the 60 per cent equity stake is N40.24 billion.
Mobil Oil Nigeria is valued at N67.07 billion at the NSE, with its total
issued shares of 360.6 million ordinary shares of 50 kobo each closing
yesterday at N186 per share.
Formerly known as IPMAN Petroleum
Marketing Company Limited (IPMCL), Nipco was incorporated by members of
the Independent Marketers Association of Nigeria (IPMAN) on January 8,
2001 as a private limited liability company to participate in the
distribution of white petroleum products business in Nigeria.
Managing director, Nipco Plc, Mr.
Venkataraman Venkatapathy, said the SPA marks the beginning of a
six-month transition period for the effective takeover of the downstream
oil giant.
He said the parties have initiated the
process of obtaining regulatory approvals from the Securities and
Exchange Commission (SEC) and NSE adding that the transition period will
also enable Nipco to effectively manage a smooth and successful
completion of the transaction.
“Nipco, considers this acquisition an
important synergy. It is part of our strategic move to support Nipco’s
continuous growth and expansion of its Nigerian retail footprint. We are
confident of adding tremendous value to MON and likewise MON will add a
huge value to Nipco. In furtherance of this value addition, Nipco will
continue to maintain the Mobil brand on its retail outlets as well as
continue to blend and sell the Mobil brand of lubricants under Branding
Licence(s) from ExxonMobil,” Venkatapathy said.
According to him, Nipco would justify
the confidence repose in it by ExxonMobil for selecting it as the
preferred bidder for the acquisition of MON and Nipco will continue to
ensure full brand compliance with ExxonMobil’s global standards as well
as rigorously sustain and follow ExxonMobil’s code of conduct, ethos and
operational excellence.
“MON will continue to run as a separate,
distinct and independent company ,from Nipco Plc .Each with its own
chief executive officer .Each chief executive officer will report to its
board of directors,” Venkatapathy stated .
According to him, in addition to giving
the employees much needed assurances on their job safety, Nipco’s goal
is to increase presence and efficiency by expanding MON’s retail
footprint to a minimum of 300 by December 2017 and make it a vibrant
one.
Venkatapathy noted that Nipco’s
expansion trend reinforces its implicit confidence in Nigeria’s future
pointing out that the Nigerian economy still provides a robust and
premium return on investment and Nipco is privileged to have been given
this opportunity by ExxonMobil on its home ground.
“To our shareholders and stakeholders,
we say welcome to a new dawn. A new era that will usher in stability,
prosperity, sustainability and growth,” Venkatapathy assured.
Mobil Oil Nigeria was incorporated as a
private limited liability company in 1951 and converted to a public
limited liability company in 1978. Its shares were listed on the
Nigerian Stock Exchange (NSE) in 1979. Mobil Oil Nigeria is a subsidiary
of Mobil Oil Corporation of the United States of America, which holds
60 per cent equity stake.
Source: The Nation
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